this is business live from bbc news with ben bland and david eades. china accuses president trump of "wishful thinking" and "deceitful drama" in a highly unusual attack over trade. live from london, that's our top story on monday 6th august. governing a country is not like doing business — that's the warning from chinese state media to the us president — so what will it take for the world's two biggest economies to settle their differences? also in the programme... europe's largest bank hsbc reports a jump in profits as it continues to invest in technology and growth in asia. as always we keep an eye on the

markets, not much movement across europe at the start of the trading day, we'll keep an eye on it and get an expert take later. also, mapping the world — drones are getting ever more powerful and new technology is helping them see things in ever more detail. so can they really add tens of billions of dollars to our economies? today we want to know — do you think the benefits of drones mapping out our world outweigh the risks such as invasions to our privacy? let us know — just use the hashtag bbcbizlive. always good to hear from you, keep those tweets coming in to us. hello and welcome to business live. the trade war between the united states and china has heated up with a highly unusual personal attack on president trump in chinese state media. thr people's daily newspaper said the us president was starring in his own "street fighter—style deceitful drama of extortion and intimidation". it added that trump's

desire for others to play along with his drama is "wishful thinking". all of this comes after china announced tariffs on another $60 billion of us exports late on friday. they would range between 5% and 25% and affect more than 5,000 different items. they said those would come into effect if the us proceeded with tariffs on $200 billion of chinese exports. last week the us said it was looking at those tariffs being as high as 25% rather than the previously announced 10%. if they do come into effect, $360 billion of goods traded between the world's two biggest economies would face tariffs — in a dispute president trump started over what he said were china's unfair trade practices. it is getting bigger by the day, it feels! rajneesh narula is professor of international business regulation at henley

business school. thank you forjoining us. the language from ageing, notjust from mrtrump is language from ageing, notjust from mr trump is pretty inflammatory. a knee jerk response to what they have heard from mr trump or is more thought going into this?” heard from mr trump or is more thought going into this? i think this is a cool and calculated response. it might look as if they are engaging rhetoric like trump does but they have picked industries very carefully that to maximum harm to america. they have picked industries which don't harm the chinese as much because these are industries or products where there are multiple sources apart from american ones. so if they've got liquid petroleum gas on their list of targeted sectors that is one example? yes. they have started looking for alternative sources of petroleum, two or three months ago.

this hasn't just petroleum, two or three months ago. this hasn'tjust suddenly happened, they have brought it through carefully. they figure that there are multiple suppliers of small or medium aircraft but when it comes to big aircraft you will buy from boeing. so if you are going to put ta riffs boeing. so if you are going to put tariffs on big aircraft you are taxing the chinese consumer. this is a very careful methodical approach, which it should be if you are going into a trade war. yet that says something about the mindset in beijing about the readiness to negotiate. i think they are in for the long game. and they are playing with the banks money. the chinese government has deep pockets and of course the chinese to communist party is in charge, they have been in charge much longer than trump will ever be in power. this is not a business they are running, it's a

country. as for the currency, that has fallen. a by—product i suppose but possibly not bad thing.|j has fallen. a by—product i suppose but possibly not bad thing. i don't think they want to devalue the currency but the markets have taken this ina currency but the markets have taken this in a particular way which is very beneficial to the chinese. if the currency falls to 7.2 against the currency falls to 7.2 against the dollar it can absorb the cost of those tariffs by trump which is rather ironic. they would settle for that. rajneesh, thank you very much. let's take a look at some of the other stories making the news. the company that makes chips been hit by a computer virus. taiwan semiconductor manufacturing says a number of its computers were infected on friday evening. it says the disruption could cost them more than $250 million in revenue. national australia bank is to compensate thousands of pension fund customers who paid for advice they never received. the country's national inquiry into its banking sector has heard the misconduct happened between 2012 and 2017 and affected 220,000 customers.

the bank has promised to pay $61; million in compensation. the uk's finance minister, philip hammond, has warned that france may try to bind london's financial services sector in red tape following brexit. the financial times reports he made the comments in a meeting with business leaders. he urged them to develop alternative pathways for growth. europe's largest bank hsbc says it pre—tax profits rose in the first half of this year to $10.7 billion. the bank makes the vast majority of its profits in asia and is continuing to expand in china as well as invest in new technology. katie silver is in our asia business hub in singapore. katie, is that asia pivot working? it appears to be, david. as we say,

profit beat expectations and revenue was up yet relatively subdued. but the problem was costs. we saw an increase of about 7% in expenditure towards this pivot, so we saw an increase in the cost of front line staff and technological investment. this is in lines with the goals of the new ceo. it follows shrinking and restructuring at the banks we've seen 87,000 jobs go from the bank in recent yea rs seen 87,000 jobs go from the bank in recent years and several leadership changes. this pivot towards asia which is ironically the bank going back to their roots, the ceo says he wa nts to back to their roots, the ceo says he wants to expand into hong kong and southern china and we are seeing success in this area. 220,000 new credit cards issued in china and 90% of their profit came from the region. we are also seeing pressures from about $15 billion in expenditure into technology and this

asian pivot. mr flint has said he is cautiously optimistic for growth ahead despite the ongoing china — us trade war. katie in singapore, thank you. let's take a look at the markets. asian stock markets were mixed on monday, with investors broadly cautious amid fresh signs that the us—china trade war is escalating. we can take a look at the picture across europe. not moving a huge amount but ever so slightly down this morning at the start of the trading week. we will delve into that in detail and an expert eye on that in detail and an expert eye on that in detail and an expert eye on that in a moment. first paul blake has the details of what's ahead on wall street today. it is a big week for media companies here in the us, with many top brands reporting their earnings. at the top of the agenda is disney, which will announce its quarterly results on tuesday. it's looking like a mixed bag for the media powerhouse. over the past three months it's had some big hits, including avengers infinity war and the incredibles 2.

but also a big disappointment in solo, a star wars movie. beyond the headline numbers, wall street comments on how it will bring the assets it brought from 21st century fox into the magic kingdom. you remember that disney edged out comcast to purchase those film and television assets from rupert murdoch's media empire last month. beyond disney, look for earnings this week from thomson reuters, viacom and discovery. joining us now is mouhammed choukeir, chief investment officer, kleinwort. mouhammed, thank you forjoining us. let's go back to that age is busy result, the last of the big european banks to report. what's the general perspective of the european banking sector, bright? it's encouraging results from hsbc but you've got to put it in the context of european duesin put it in the context of european dues in general and also in the context of global banks and in that

context of global banks and in that context it hasn't done very well. to give his idea, hsbc earnings were up 4.5% whereas european earnings in general web closer to 8% so a bit disappointing in context. and european banks and performed the us banking sector. so a good start yet still behind the wider market. smart to beat the asia pivot because the growth there was considerably higher, perhaps that was the right at ago. the chinese economy is growing at a higher rate than the rest of the world, and it's easy to forget what it stands for, the hong kong and shanghai banking corporation. focusing on asia is a smart thing to do. interesting comments on brexit, they've had a direct effect on sterling. i'm fascinated by the commentary over the weekend, how one attaches probability to brexit is beyond me! but actually if you look at

stirling, the rate versus the dollar, in fact it has broken through that which would suggest a higher probability. if we didn't have the uncertainty of brexit, given the economic data in the uk it would suggest that still it should be higher. i could uprising and at higher probability. liam fox is perhaps underestimating how likely are no—deal brexit would be as far as the markets are concerned. this discrepancy between his assessment and what the market is pricing. you would perhaps look at the markets is a more accurate judge? would perhaps look at the markets is a more accuratejudge? not would perhaps look at the markets is a more accurate judge? not us political, certainly. the market ta kes political, certainly. the market takes its cue from some political rhetoric but ultimately if it does not know it will air on the side of caution which is what is happening with sterling. the outcome is unknown so it's been declining. the us monthlyjob figures are out. and shooting expectations for newjobs created. but investors seem to take

the longer view —— under shooting. they seem to think that growth is still there and the fact that wages are still subdued takes away the fears of potential interest rate hikes. the first disappointing numbers versus expectations and sometime, and employment in the us is 3.9%, near multi—decade lows, with full employment and everything trump says about creating employment with the risks of tariffs will generate employment at least in the domestic market. mouhammed, thank you very much. we will see you in a moment to the newspapers. still to come... mapping the world, no less. drones are getting ever more powerful and new technology is helping them see things in ever more detail so can they really add tens of billions of dollars to our economies? you're with business live from bbc news. the uk's house of fraser will shut

31 of its 59 shops injanuary, after settling a deal with landlords, getting rid of one hurdle to a potential rescue deal. but the chain of department stores is still urgently hunting for an injection of investment in order to survive. joining us from bristol is laith khalaf, senior analyst at hargreaves la nsdown. laith, good to see you. a critical first hurdle or latest hurdle? yes, step in the right direction but we all know there's a long journey ahead. this clears the legal hurdle. it means that any potential rescue deal is more attractive for rescue but we still need to flush out someone but we still need to flush out someone who will stump up the cash and help house of fraser get through the difficult position it is in now. a couple of people are in the frame that has of fraser, it still needs that has of fraser, it still needs that cash, that's the bottom line.

with this hurdle, we saw the problem it out with the potential chinese investor, it was this hurdle, so would you betting be that it's in a good position now to put a good case forward and save the stores and house and tried to pick things up again —— save the stores that it has? it has a clearer position. i would not describe it as good, but clearer, which means this hurdle is out of the way. so anyone going to inject cash has more visibility as to what the business will look like. pa rt to what the business will look like. part of the problem is that the business has seen 7% like—for—like sales decline in the last figures. we are buying into a distressed acid now. we know mike ashley has 11% of house of fraser at the moment, and he might put something together. reports say he is cooling on that. and philip day owner of edinburgh woollen mill has been linked to the

deal. we only have speculation so far until this cash on the table the future of house of pace is very uncertain. laith, thank you very much. plenty more business on our web page. the uk's most un-punctual airline. there is a big clue in the picture. it is wizzair. an average of 23 minutes late. your‘re watching business live. our top story... the trade war between the united states and china has heated up with a highly unusual personal attack on president trump in chinese state media. the people's daily newspaper said the us president was starring in his own "street fighter—style deceitful drama of extortion and intimidation". now let's get the inside

track on drones. because it's an industry that's really taking off. a report by pwc predicts it'll be worth £112 billion by 2030 in the uk alone, and that over 600,000 people will be employed in the industry, as new types ofjobs to develop, build, operate and regulate drones will be needed. well one company that seems well—placed to benefit from this growth is sensat, uk's largest drone data provider, which uses the aerial technology to carry out digital mapping. james dean is the founder and chief executive of sensat. thank you for being here. you have said youraim is thank you for being here. you have said your aim is to digitise the entire world. you are sounding like

adrno entire world. you are sounding like a dr no character wanting to rule the world, is it down to the detail you can produce? drones give us a new viewpoint on the world. a couple of years ago if you wanted to carry out mapping techniques you would have these satellites or manually collect information but these flying robots give us the ability of capturing high detailed information very quickly. remote sensing is ages old now, the ability to track what is going on down here, but to what degree? the technique being used is over 100 years old so it is strange application of old science and new technology. it allows us to create digital datasets so computers can interact with those. as an example, let's say you wanted to map the studio or a road or something, we can do that, i could do that in

theory. how would a drone make that better? if i ask you to map the studio you would measure the important points, the edges of the furniture and the room. the drone picks out everything. 0n furniture and the room. the drone picks out everything. on average we ta ke picks out everything. on average we take about 15,000 times more data points than you would take. it gives us points than you would take. it gives us everything in the digital sensor we can build intelligence back into that. on a practical level, how is this used in day—to—day life? that. on a practical level, how is this used in day-to-day life? we fly fixed wing or tom ellis drones. they are flying back and forth taking thousands of images of the ground. we match those images together. if you get images of an object from enough different angles you can build a 3—d representation. it gives us build a 3—d representation. it gives usa build a 3—d representation. it gives us a dataset which can be used for multiple uses within different

industries. at sensat we focus on infrastructure construction. we solve problems where you would have to physically manually measure something before. so roads and that sort of thing? yes, we do a lot of work inroads. you are cutting the time frame, it is much quicker simply to let the computer did the work for you and then you tidy around a little bit and then it is donein around a little bit and then it is done ina around a little bit and then it is done in a day two. we have the highest resolution digital set of high speed 2 between london and birmingham. it means we have full design capability of this area. it is the digital cameras who can run an algorithm. the other benefits is safety. if you want to survey something like a road, nobody has to set foot on the road so that means we don't have too close the road.

how did you get into this, did you get a drone as a gift? in a way, yes. i used to use satellites to study the earth. we are taking images from the earth about 200 miles away. i realise these little flying robots could get is 200 miles closer. it is the way i started a couple of years ago. you should be a video games turn drone geek? they just allow us to gather data. it is what we do with the data that is interesting. you can fly the uk government has given you a license to fly out our vision? yes, normally you fly 500 metres. we are going to fly beyond the visual line of sight.

we have much more efficiency in data ca ptu re we have much more efficiency in data capture and delivery in search and rescue and agriculture information. we have been asking for tweets this morning about how people feel about drones mapping our world in that much detail. we have had a range of things. someone says, drones can be dangerous and shouldn't be in the hands of the general public. then we have old—fashioned hands of the general public. then we have old —fashioned saying, hands of the general public. then we have old—fashioned saying, mapping the world is fine as long as my eyes are not x—ray eyes, if you get my drift, worrying about privacy issues. tristan says, why would people be concerned, about accurate maps. somebody else says my concerns lie within the boundaries of air traffic and access them what legal protection and tracking systems do we have? thank you very much for your tweets. james, thank you for coming in to talk to us about

sensat. there was an alleged drone terrorism attack in venezuela. it wasn't me. police to hear it. georgia green is a cordon bleu—trained baker from london. but her big break came when the famous model cara delevingne bought one of her cakes and tagged her on instagram. so we've been to her kitchen, where she told us how she now uses instagram as the main force in her marketing. i got commission to make a cake for the famous model. it was my sister who said you need to go on instagram, build up a profile and get her to tag you in it. i went from about 100 followers to about 6000 and i think that was the start of my instagram and i already had a big boost. you upload a photo, people like it

and see what you are doing and then react to it and then maybe someone can get in touch and order itjust by seeing it. the more i uploaded, the more interest i had of people and the more orders came in. i am also using instagram as a portfolio of my work, because it is so visual. instagram is something that you really have to keep up. if i haven't uploaded a photo, my followers might think i am not as busy this week. so i have to show i am busy making lots of ca kes i have to show i am busy making lots of cakes and showing different options i can do, rather than the same things over again. it is not simply making a cake, photograph it

and put it on, there is a whole background that goes into one photo. let's start with the new york times, too little too late. this bankruptcy boom among older americans and it's causing some worries because it is at its worst level since 1991?m you look at the headline number, it is up 200%. but to give you the context, it is going up from one ba n kru ptcy context, it is going up from one bankruptcy per 1000 people to about three bankruptcy is per 1000 people. people aren't saving enough and they are living longer. those two dynamics are causing americans to file for bankruptcy. it underlines how close to the edge a lot of

people are, they just how close to the edge a lot of people are, theyjust about cope but then they get one, unexpected financial shock wave in their lives, be ita financial shock wave in their lives, be it a big medical pay—out or something and it throws them off kilter? exactly, it is these big, one—off expenses they cannot adjust for. the change in the pension regulator where historically as a pension take you would take the fine benefit, whereas many have to contribute regularly. the guardian is doing a story about walker's crisps and how they are putting out 7000 non—recyclable crisp packets every minute. the pressure is on them to stop. will you still buy walkers crisps, even with the non—recyclable packets? walkers crisps, even with the non— recyclable packets?” walkers crisps, even with the non-recyclable packets? i am not a big consumer of crisps, but research shows plastic is not really plastic. we have to stop you there, thank you very much. more from us tomorrow. we will see you then. hello. hot and sunny start to be

wea k hello. hot and sunny start to be weak in the south—east the changes under way this week. temperatures falling close to, if not touch below average. there are some showers in the forecast this week but also some sunshine. we have a good deal of sunshine. we have a good deal of sunshine across england and wales under the area of high pressure. this cold walking in from the north—west bringing cloud and patchy outbreaks rain. much of england and wales today, dry and bright, perhaps some low cloud lingering for the western coastal areas. for the far north of scotland we will see brighter intervals developing. breezy with showers in the north—west. lighter winds across much of england and wales and it will be hot in the south—east with

highs of 31 celsius. for scotland and northern ireland, high teens, low 20s. 0vernight, the cold front extends into parts of wales and the south—west. cloud and patchy outbreaks of rain. the head of the clear skies but behind it patchy cloud and showers. temperatures overnight, hot in the south—east, temperatures in the mid to high teens. further north, bit fresher and around 11 to 13 celsius. we start off at the colvine sitting across parts of southern scotland, far north england, working selfies. the rain will fizzle out and we will see sunny the rain will fizzle out and we will see sunny spells developing. hot in the south—east, highs of 32 celsius. patchy cloud and a few showers feeding into the northwest for scotla nd feeding into the northwest for scotland and northern ireland. tuesday evening, there is the chance of seeing heavy and thundery showers into the south before the hot air will be replaced by something much

fresher. the orange colour being replaced by the yellow. that means that by wednesday we will look at a fresher feel to things. wednesday, that by wednesday we will look at a fresherfeel to things. wednesday, a day of sunny spells and showers, though showers for parts of the west bank still whether from working into the west. there could be some heavy showers associated with that. a good deal of dry and bright weather and sunny spells. cabbages feeling fresher than tuesday in the south—east with 2a celsius and late teens in the north. good morning, it's 9 o'clock, i'm riz lateef, welcome to the programme. the parents of the third british holidaymaker to die this year at an apartment block in magaluf say they were shocked at the lack of official support they received after his death. 18—year—old tom channon was on his first holiday abroad without his parents when he fell from a walkway. i couldn't believe it, i couldn't believe it. and i still, to this day, don't believe it. i still think, it's a bad nightmare and tom's

going to come home. you can watch the full film at quarter past nine. katie gee was just 18 and volunteering at a school in zanzibar when attackers threw acid in herface and changed her life forever. five years and 70 operations later — she's here in the studio, to tell us about her recovery. and after labour leaderjeremy corbyn